Authority: Planning and Growth Management Committee Item 17.5 as adopted by City of Toronto Council on October 2, 3, and 4, 2012 Enacted by Council: Bill No. 1361 CITY OF TORONTO BY-LAW No. -2012 To amend City of Toronto By-law No. 518-2008 being a by-law to adopt the Waterfront Community Improvement Plan for Brownfield Remediation and Development of Prescribed Employment Uses. WHEREAS pursuant to Section 28 of the Planning Act, the Waterfront Community Improvement Plan for Brownfield Remediation and Development of Prescribed Employment Uses was adopted by City of Toronto Council by By-law No. 518-2008, on May 26 and 27, 2008; WHEREAS Section 28 of the Planning Act provides that the council of a municipality may adopt or make amendments to a community improvement plan; WHEREAS at least one public meeting has been held in accordance with the Planning Act; The Council of the City of Toronto HEREBY ENACTS as follows: 1. Delete Schedule "1" to City of Toronto By-law No. 518-2008 and replace it with the amended community improvement plan attached hereto as Schedule "1". ENACTED AND PASSED this day of October, A.D. 2012. FRANCES NUNZIATA, Speaker ULLI S. WATKISS City Clerk (Corporate Seal)
Schedule "1" The Waterfront Community Improvement Plan for Brownfield Remediation and Development of Prescribed Employment Uses TABLE OF CONTENTS 1 PROJECT AREA AND SUMMARY... 5 1.1 Project Area... 5 1.2 Summary... 5 2 AUTHORITY... 5 2.1 Authority for CIP and Grants... 5 2.2 Authority for Brownfield Assistance... 7 3 BASIS... 7 3.1 Waterfront Toronto and the Revitalization of the Waterfront... 7 3.2 The Vision for Waterfront... 7 3.3 The Vision for East Bayfront... 8 3.4 The Vision for West Don Lands... 9 3.5 The Vision for the Port Lands... 9 3.6 The Need for Financial Incentives on the Waterfront... 10 3.7 Economic Development Focussed on Sectors... 12 3.8 Other Financial Assistance for the Waterfront... 13 3.9 Former City of Toronto Official Plan... 13 4 OBJECTIVES OF THE COMMUNITY IMPROVEMENT PLAN... 15 4.1 Implementing Broad City and Regional Goals... 15 4.2 Objectives for East Bayfront... 16 4.3 Objectives for West Don Lands... 16 4.4 Objectives for the Port Lands... 17 5 MUNICIPAL TAX INCREMENT... 17 6 THE CIP PROGRAM... 17 6.1 Brownfields Remediation Tax Assistance... 17 6.2 Development Grants... 18 6.3 Land Acquisition and Disposal... 18 6.4 Financial Incentives Agreement... 19 6.5 Focus Areas... 19 7 CIP REVIEW... 19 8 REPEAL... 19 APPENDIX 1: BROWNFIELDS REMEDIATION TAX ASSISTANCE... 20... 20... 20... 20... 21... 22... 23 1 INTRODUCTION 2 PROVINCIAL PARTICIPATION 3 CALCULATION AND DURATION 4 ELIGIBILITY 5 OTHER CONDITIONS 6 PAYMENT
APPENDIX 2: DEVELOPMENT GRANTS (TIEGS)... 24 1 INTRODUCTION 2 DEVELOPMENT 3 ELIGIBILITY CRITERIA... 24... 24... 24 3.1 Definitions... 24 3.2 Eligible Uses... 27 3.3 Port Lands Focus Area... 28 3.4 Relationship with Other Grants... 29... 29 4.1 Development Grants... 29 4.2 Development Grants with Brownfields Remediation Tax Assistance... 30 4.3 Grant Limits... 30 4.4 Adjustments... 31 4.5 Duration... 31 4.6 Staged Development... 31 4.7 Condominiums... 32... 32... 33 4 GRANT CALCULATION 5 OTHER CONDITIONS 6 PAYMENT
The Waterfront Community Improvement Plan for Brownfield Remediation and Development of Prescribed Employment Uses 1 PROJECT AREA AND SUMMARY 1.1 Project Area This Community Improvement Plan applies to certain lands within the East Bayfront, West Don Lands and Port Lands Community Improvement Project Areas. The areas to which the Plan applies are shown on Maps 1, 2 and 3 attached hereto and are referred to as the East Bayfront, West Don Lands and Port Lands Focus areas. Each is part of the Central Waterfront Area. The East Bayfront Focus Area is a 32 ha (78 acre) area located on the Inner Harbour that is presently characterized by older industrial uses, low intensity recreational and commercial uses, and brownfields. The West Donlands Focus Area is a 32 ha (80 acre) former industrial area that is presently almost entirely in public ownership. The area is now largely vacant and in the early stages of its redevelopment. The Port Lands Focus Area is a 100 ha (247 acre) area that is presently characterized by a mix of industrial, film and retail uses. 1.2 Summary This CIP provides financial incentives to encourage brownfields remediation and/or the development of specific employment uses to assist in the revitalization of the Waterfront. Incentives may be available for up to 12 years when the two programs are combined. While both programs support employment uses, incentives for brownfields remediation will be available for a wider range of uses than those provided to specifically encourage development for employment uses. 2 AUTHORITY 2.1 Authority for CIP and Grants Section 28 of the Planning Act authorizes municipalities to designate a Community Improvement Project Area (CIPA) where there is an official plan in effect that contains provisions relating to community improvement in the municipality. The Planning Act further authorizes Council to prepare a plan suitable for adoption as a Community Improvement Plan (CIP) for the CIPA.
The in-force Official Plan 1 contains appropriate provisions related to Community Improvement as required in order to designate and prepare plans for Community Improvement Project Areas as envisioned in Section 28 of the Planning Act. CIPA means, a municipality or an area within a municipality, the community improvement of which in the opinion of the council is desirable because of age dilapidation, overcrowding, faulty arrangement, unsuitability of buildings or for any other environmental, social or community economic development reason. Once a CIPA has been designated, a municipality may prepare and adopt a CIP for the CIPA. The Planning Act authorizes municipalities to use a Community Improvement Plan to: - Acquire, hold, clear, grade or otherwise prepare land for community improvement, (s. 28(3) a, b, c); - Construct, repair, rehabilitate or improve buildings on land acquired or held by it in conformity with the community improvement plan (S. 28(6)a); - Sell, lease, or otherwise dispose of any land and buildings acquired or held by it in conformity with the community improvement plan (s. 28(6)b); and, - Make grants or loans to the registered owners, assessed owners, and tenants to pay for the whole or any part of the cost of rehabilitating such lands and buildings in conformity with the community improvement plan (S.28(7)). Section 15 of the Official Plan for the former City of Toronto sets out its Community Improvement policies. The Official Plan identifies the designation of CIPAs and preparation of CIPs, pursuant to Section 28 of the Planning Act, as community improvement measures. The Plan specifies several objectives for community improvement programs and activities, which include, among others: - to promote and stimulate private sector initiatives which will create employment and generate an improved municipal tax base in ways which are consistent with the City s economic development strategy and other policies; and - to improve employment opportunities. Section 2(5) of the Central Waterfront Secondary Plan identifies the entire Central Waterfront Area as a Community Improvement Project Area. The plan also states that in order to expedite revitalization efforts, Community Improvement Plans will be developed to identify specific revitalization projects. 2 Further discussion of Official Plan provisions that support this CIP is found later in this CIP. 1 The new Official Plan for the City of Toronto is not yet in force for the Waterfront. As such, the former City of Toronto Official Plan is still in effect for the purpose of this CIP. However, the new Official Plan for the City of Toronto also contains provisions that support the designation of the Waterfront as a CIPA and further support the provisions of this CIP. They will be addressed to the extent that they represent Council s policy intent for the Waterfront. 2 The Central Waterfront Secondary Plan was adopted as an amendment to the former City of Toronto Official Plan which, as noted, remains in effect for the Waterfront. It has been brought forward as a Secondary Plan to the new City of Toronto Official Plan.
2.2 Authority for Brownfield Assistance Section 333 of the City of Toronto Act, 2006 provides authority for the City to cancel all or a portion of municipal taxes, or to defer municipal taxes for contaminated properties within a CIPA, where a CIP is in effect with policies contemplating tax assistance for remediation of contaminated properties. This section also states that the Province may provide for the cancellation or deferral of school taxes as further tax assistance for the purpose of remediation of contaminated properties. 3 BASIS 3.1 Waterfront Toronto and the Revitalization of the Waterfront Toronto, Ontario and Canada have jointly established the Toronto Waterfront Revitalization Corporation ( TWRC ), known as Waterfront Toronto, as the lead agency responsible for the regeneration of Toronto s Central Waterfront (the Waterfront ). The overall vision for the Waterfront is provided by the City s Central Waterfront Secondary Plan which was adopted as an Official Plan Amendment to the former City of Toronto Official Plan. TWRC is to implement this vision with a program for providing infrastructure and public open space, and redeveloping lands within the Waterfront as a series of mixed use communities, through both public and private sector investment. This Community Improvement Plan is one component of the implementation of the vision for the Waterfront, and must be seen as part of the broader strategy being implemented by the City and TWRC. 3.2 The Vision for Waterfront The Central Waterfront Secondary Plan envisions the transformation of the Waterfront into diverse mixed use communities integrated with parks, and open spaces that will also connect to the City. The transformed Waterfront will provide a unique environment for urban living, employment and recreation. The Central Waterfront Plan has four Core Principles: A. Removing Barriers/Making Connections B. Building and Network of Spectacular Waterfront Parks and Public Spaces C. Promoting a Clean and Green Environment D. Creating Dynamic and Diverse Communities
In scale, we are creating a small city on the Waterfront. The Central Waterfront Plan calls for over 40,000 new housing units for about 68,000 people. Over 900,000m 2 of commercial development is planned, and this will generate some 35,000 jobs. Given the many Federal, Provincial and City initiatives promoting sustainable development, it is important that we intensify within urban boundaries. Weaving this land into the City by creating transit-based communities, work places, green spaces and destinations implements the initiatives of all levels of government. New Waterfront transportation and tourism infrastructure and activity will strengthen the city s appeal not only to residents, but to people across Canada and around the world. Within the Waterfront we are creating spectacular parks and a new mouth for the Don River that will also address flooding in the east end of the City. Major cities around the world recognize the importance of reinvesting in cities and have launched ambitious renewal programs involving public investment. The Central Waterfront Plan sets the framework for this to happen in Toronto, including the economic benefits of renewing our waterfront. 3.3 The Vision for East Bayfront The Central Waterfront Secondary Plan envisions the transformation of the East Bayfront to a prominent waterfront address for working and living amidst the energy and abundance of waterfront activities, including a new water s edge promenade and other public activities in a new East Bayfront park. Cornerstones of East Bayfront renewal are a revitalized Queens Quay East, the extension of high-level transit to the area and the creation of a sustainable 21st century community of the future. City Council has endorsed precinct plans for East Bayfront. They provide for new mixed-use precincts with a diversity of employment and residential functions, along with a public realm that makes it a significant public destination on the waterfront. Approximately 6,300 residential units and 185 800 m 2 (2 million sq. ft.) of non-residential development, to support a job target of 8,000, is proposed to be built in the area west of Parliament Slip. The area east of Parliament Slip could be home to about 3,500 residential units and 105,000 m2 (1,130,000 sq.ft.) of non-residential development to support up to 3,500 jobs. The new community will be lined with a water s edge promenade, a new 1.47 ha (3.6 acre) Sherbourne Park, a public gathering space at the Jarvis Street Slip and several other new public spaces of varying size and function. Queens Quay East will be re-built to accommodate all forms of pedestrian, transit and vehicular traffic. The City has also put in place the zoning to support the precinct plan for the area to which the CIP applies. Construction of parks and infrastructure by TWRC is scheduled to start later this year and will continue for several years. It is anticipated that the area will be built out over the next 15 years.
TWRC s employment strategy for East Bayfront aims to build an intelligent community in East Bayfront, paying as much attention to investing in human capital and social capital as it does in bricks and mortar. The strategy is committed to location-specific competencies knowledge, workforce skills, logistic networks, entrepreneurial infrastructure, and quality of place attributes. The strategy seeks to establish a clearly defined knowledge node on the waterfront. 3.4 The Vision for West Don Lands The Central Waterfront Secondary Plan envisions the transformation of the West Don Lands into a diverse mixed use community. These communities will capitalize on their strategic downtown location, their historic roots, the naturalization of the of the mouth of the Don River, including flood protection of the new communities and flood vulnerable areas of the downtown, and the synergy created by the development of Port Lands. City Council has endorsed a precinct plan for West Don Lands. It provides for a new mixed-use community with a diversity of residential and employment uses along with a significant public realm that will make it a significant public destination in the City of Toronto. The precinct plan targets approximately 5,800 residential units and between 800,000 to 1 million square feet of commercial space. The area is projected to be built out over a 15 year period. The athlete's village for the Pan/Parapan American Games in 2015 will be built here. The new community will focus on the new Don River Park, a new 7 ha (18 acre) recreation area adjacent to the Don River that will provide both neighbourhood and City wide amenities. Bayview Avenue and Front Street will be rebuilt featuring an expanded public realm. Cherry Street will be redeveloped to accommodate pedestrians, transit and vehicular traffic. The city has implemented zoning to support the vision of the precinct plan for the area to which the CIP applies. Construction of the flood protection landform has begun and will be followed by construction of Don River Park. The first housing units will soon be under construction and full build out is expected to take 15 years. The employment uses targeted for West Don Lands are those that are complimentary to its location close to downtown, the Distillery district and the waterfront. Employment uses targeted could include boutique financial services, information technology, creative users (marketing, graphic design, film), small to medium professional services and film-related uses. TWRC is currently undertaking a more specific study for targeted uses. 3.5 The Vision for the Port Lands The Port Lands will be developed with new media and knowledge-based businesses and green industries, along with maintaining their role as a location for downtown-serving and marine-related industries and the Port of Toronto. It is expected that existing business operations will continue in the Port Lands until redevelopment proceeds.
Development in the Port Lands will take many years and undertakings will proceed in a phased manner. Key undertakings in the Port Lands are reconnecting the City with the Lake and the renaturalizing the Mouth of the Don. Given the size of the Port Lands a number of Precinct Plans will be developed and future zoning will proceed at the precinct level. This is the detailed planning that will deal with issues of soil cleanup, flood control and servicing, urban design, community improvement, heritage and environmental performance standards. The Don Mouth Naturalization and Port Lands Flood Protection Project is underway. This environmental assessment will provide flood protection to the Port Lands and establish a naturalized Don Mouth. This is being reviewed with in the context of the Lower Don Lands. The Lower Don Lands run from the Parliament Street slip east to the Don Roadway and from the rail corridor south to Commissioners Street. This is a critical link between the emerging waterfront communities of East Bayfront, West Don Lands and the Port Lands. The area south of the Ship Channel is unserviced. Lake Ontario Park will be developed south of Unwin Avenue and a Recreation Corridor is being explored adjacent to the park. The areas noted above are undergoing significant reviews in order to achieve the core principles of the Central Waterfront Plan. Until the outcome of the various undertakings is known and until precinct plans and zoning are in place, it is not appropriate to provide financial incentives for uses to locate here. The planning and infrastructure framework is not in place. Therefore, these areas have been excluded from the Focus Areas. The area east of the Don Roadway and north of the ship channel, to which this Schedule applies, will be the final area to undergo redevelopment. The City and TWRC are actively relocating employment uses from other areas of the Port Lands to here. This area is an attractive location for business and the City wants to promote business in one of the few employment areas near the downtown with an industrial character. The Port Lands area is a suitable location for a Film Studio Complex. A major film studio has recently been constructed and there are other film studios in this area. Also, this area abuts the City s Studio District on the north side of Lakeshore Boulevard. This CIP should be expanded to include other Port Lands locations once the planning and infrastructure framework is in place. 3.6 The Need for Financial Incentives on the Waterfront 3 The Waterfront faces a number of market challenges to attracting the non-residential development that is an integral part of the vision for its revitalization. Financial incentives will be required, at least in the short term, to attract private non-residential investment. These market 3 This section is based on Financial Incentives for Toronto s Waterfront, a report produced for the City by Hemson Consulting Ltd in May 2005.
challenges are now described. i. Project Challenges Project challenges stem from site specific conditions and building cost premiums. The high water table and soil conditions may increase building costs, particularly the cost of underground parking, which will be required to meet the density and urban design goals of the Waterfront. ii. Locational Challenges Locational challenges for the waterfront in competition with other areas: The Waterfront s disadvantages include - the lack of amenities such as restaurants and retail for workers, parks and business services; - the relatively long walking distance to clients in downtown and to the subway and GO system; - the down-market image of the area; and - the perceived safety risks because of the remote location. In addition the Waterfront shares the challenge posed by higher property taxes faced by all business in the City. The implication of these locational challenges is that the number of prospective users prepared to locate in the waterfront is more limited than in other locations and the rents that developers/building owners need in order to justify project investments will be difficult to achieve. iii. Business challenges Individual industries or sectors being targeted for the Waterfront may also face challenges specific to the sector or industry that will deter them from building or occupying new space in the Waterfront. These are discussed in greater detail below. iv. Challenges for the uses and building types the City wants to attract to the Waterfront Office uses will face a variety of challenges: - the lack of amenities and the limited accessibility to the subway and GO; - the Waterfront not currently being recognized as an office location; - relatively high occupancy costs, because the buildings will be new and expensive to build (expensive parking; quality design and finish); and - market rents that may not be high enough to support the development costs of a new building.
The implication of these various challenges is that Waterfront office projects will need to be able to attract tenants that see an advantage in being located in new and innovative areas rather than in traditional office locations. These types of tenants are more likely to be young businesses that may be less able to afford the rents required to support new space. In addition population-serving office uses will be difficult to attract in the early stages of development because of the lack of local residential population and employment upon which such users rely. Hybrid-industrial buildings with a higher than usual office component may suit the conditions in the Port Lands. To attract users they would have to be competitive with price levels across the region, particularly in the 905 areas outside the City with their lower property taxes. In the present market rents may not support the development costs of such a building. v. Challenges in attracting the Targeted sectors Biomedical: Biomedical facilities are very costly to build, and conditions in the Waterfront may add to those costs. They are also difficult to finance as the revenue stream for newly developed products may not be realized for a number of years. The Waterfront location would not necessarily provide any particular benefit to these facilities, and would be competing against established areas that already house a number of pharmaceutical firms (such as the Meadowvale Business Park, known as Pill Hill ). Film industry: The film industry is highly competitive, risky and cyclical, and the lack of long-term tenants and film projects makes it difficult to obtain capital financing. Information technology and other knowledge-based industries: Many firms in these sectors are in the start-up phases. They tend to be volatile, growing or shrinking relatively quickly and tend to have limited capital and weak covenants for financing purposes. These firms often have difficulty affording the kind of new high quality space envisaged for the Waterfront. Cultural industries: Cultural organizations consistently face financial constraints, and so find it difficult to afford the rents that must be charged in order to cover the development costs of brand new space. vi. Challenges for environmentally sustainable construction There will also be challenges in fostering sustainable construction, which is an important objective of development in the revitalized Waterfront. There is likely to be a cost premium associated with using sustainability and environmental technologies. While this may result in operating cost saving for the building, it will still act as deterrent to obtaining financing for new construction. 3.7 Economic Development Focussed on Sectors Over the last two decades the City has focused on developing sector development strategies and
activities designed to support their ongoing growth and international positioning using limited economic development tools. As global competition continues to escalate, the City must find new ways to ensure that our sectors continue to grow. In 2011, City Council adopted the Toronto Prosperity Initiative, and one of its initiatives is 'to encourage and support further development of strategic industry sectors with the goal of establishing world class clusters. These sectors produce the goods and services that can be sold not only locally but to the world. Selling outside of the region brings in new wealth and long-term sustainable growth. Driving new wealth creation then fuels personal spending on locally focused activities such as, shopping (retail), personal care (hairdressers) and entertainment (restaurants). 3.8 Other Financial Assistance for the Waterfront The City and the Province are also considering Tax Increment Financing (TIF) to support development in East Bayfront and West Don Lands. Through this program, the Province and the City would contribute part of the increment in property taxes resulting from the redevelopment of the waterfront to funding for infrastructure and other public improvements on the Waterfront. Any financial assistance provided through this CIP will be in addition to the TIF funding. 3.9 Former City of Toronto Official Plan The following policies of the Former City of Toronto s Official Plan provide the policy basis and direction for this CIP: i) It is the goal of Council to strengthen the vitality of the Central Area and to support its unique role as the region s primary concentration of diverse activity and major international centre. Accordingly, Council will: a) Support the development of programs and policies by all levels of government that support and promote the Central Area as an international centre for business, culture, entertainment, shopping, research and design, and institutions as the major centre of these activities within the Greater Toronto Area; [Sec 1.7; Please note that the Waterfront is in the Central Area as identified by the Former City of Toronto Official Plan] ii) Council recognizes the importance of maintaining a strong economic base and will undertake to attract a diverse range of appropriate economic activities to the City to achieve a balanced and resilient local economy which provides a wide range of job opportunities in quality workplaces for workers of differing levels of skills and qualifications. (Sec 1.13)
iii) Council recognizes that achieving the goal of maintaining a healthy and vibrant City depends on a strong economic base. It is Council s policy to maximize the number of good quality and stable employment opportunities in the City. Accordingly it is the policy of Council: a) To reinforce existing sectors of the economy. b) To seek to attract appropriate new economic activities. c) To establish and maintain an environment conducive to future economic growth and prosperity. (Sec 9.1) iv) It is the objective of Council to develop and implement a competitive economic strategy that gives appropriate support and recognition to the full range of employment activities in the City. Included in this strategy would be such initiatives as: a) exercising land use planning and other powers to enhance the economic competitiveness of the City; and b) undertaking and supporting measures to strengthen the vitality of the Central Area and to enhance its role as a major international centre for business, culture, entertainment, shopping, research and design and institutions and as the major centre of these activities within the Greater Toronto Area. (Sec 9.2) v) Council recognizes that economic diversity is necessary in order to foster a balanced and resilient economy and to promote a range of job opportunities for workers with a broad range of skills and job qualifications. Accordingly, it is the policy of Council to support a wide variety of economic activities in the City, particularly where these activities supply goods and services that are exported from the City or are import-substituting. These activities comprise both industrial and service-producing firms and organizations, including: a) financial and business services and firms; b) head office operations; c) hospitals and medical research institutions; d) universities and colleges; e) tourism, cultural and entertainment related businesses; f) media and communications activities, including broadcasting, film/video production and publishing; g) fashion and design related activities; h) port-related activities; i) environmental services and industries. (Sec 9.3)
4 OBJECTIVES OF THE COMMUNITY IMPROVEMENT PLAN The primary objectives of this CIP are to attract key businesses to the Waterfront to assist in the implementation of the Central Waterfront Secondary Plan, and to enable the City to help TWRC deliver its employment strategy for the Waterfront. 4.1 Implementing Broad City and Regional Goals The CIP will also achieve broader objectives. It is expected the CIP will: i. Help Toronto to reach the Official Plan s employment target and the employment forecast in the Growth Plan for the Greater Golden Horseshoe. ii. iii. Encourage the intensification of employment areas through expansion and new development. This is consistent with Provincial Policy Statement 2005 section 1.1.3.3 which states: Planning authorities shall identify and promote opportunities for intensification and redevelopment where this can be accommodated taking into account existing building stock or areas, including brownfield sites, and the availability of suitable existing or planned infrastructure and public service facilities required to accommodate projected needs. Promote economic development and competitiveness by: a) providing for an appropriate mix and range of employment (including industrial, commercial and institutional uses) to meet long-term needs; b) providing opportunities for a diversified economic base, including maintaining a range and choice of suitable sites for employment uses which support a wide range of economic activities and ancillary uses, and take into account the needs of existing and future businesses; c) planning for, protecting and preserving employment areas for current and future uses; and d) ensuring the necessary infrastructure is provided to support current and projected needs. (Provincial Policy Statement 2005, Section 1.3.1) iv. Support the remediation of contaminated sites in preparation of their future use for employment uses. v. Support the vision of the Official Plan for a city with a strong and competitive economy with a vital downtown that creates and sustains well-paid, stable, safe and fulfilling employment opportunities for all Torontonians. (OP p1-2) vi. Support the Official Plan s view of the City s future as one where diverse employment areas can adapt to changing economic trends and are poised to capture new business opportunities. (OP p1-3)
vii. viii. ix. Encourage the establishment of key clusters of economic activity with significant value-added investment and employment. (OP, Sec 4.6.6 b) Promote development of key sectors. Improve the built form and physical character of underutilized spaces. x. Attract private sector investment to lands and/or buildings that are vacant, underutilized, idled, or in need of repair or renovation. xi. xii. Provide for more efficient utilization of existing and future municipal infrastructure including opportunities for enhanced transit initiatives. Improve air quality, energy efficiency and reduce water consumption by requiring development meet the minimum requirements of Toronto s Green Development Standards before being eligible for development grants. 4.2 Objectives for East Bayfront The objective of this CIP for East Bayfront is to enable the City to help TWRC to deliver its employment strategy for the East Bayfront precinct. Key elements of the strategy are: i. to establish a critical mass of business activity and provide the opportunity for a dense network of business interactions and relationships to develop; ii. to design and create new campus style employment accommodation near the downtown core; iii. to focus on the information and communications technology (ICT) sector, particularly digital media and financial services software development; iv. to target other synergistic industries including financial institutions, business and professional services, media, design, education and research facilities, cultural industries and the creative sector. 4.3 Objectives for West Don Lands The objectives of this Plan for the West Don Lands are: i. to attract key businesses to the West Don Lands to assist in the implementation of the Central Waterfront Secondary Plan; and ii. to enable the City to help TWRC to deliver its employment strategy for the West Don Lands precinct.
4.4 Objectives for the Port Lands The objectives of this Plan for the Port Lands are: i. to attract key businesses to the Port Lands; ii. to create linkages to the South of Eastern Employment District that abuts to the north, and in particular to support the film industry cluster which has developed in the two areas. 5 MUNICIPAL TAX INCREMENT The programs described herein will provide financial incentives utilizing all or a portion of the Municipal Tax Increment, which, for the purpose of this plan shall be defined and calculated as follows: Formula: Municipal Tax Increment = Destination Municipal CVA Taxes Base Municipal CVA Taxes Base Municipal CVA Taxes means the amount calculated by multiplying the Current Value Assessment(s) applicable for the taxation year in which a Financial Incentive Agreement is signed for the Property upon which the Eligible Development is to be constructed, by the municipal tax rate(s) applicable for the Property, for that taxation year. The Base Municipal CVA Taxes shall be fixed in this manner for the purposes of determining the Municipal Tax Increment for the Eligible Development, subject to any adjustment arising from assessment appeals or changes to CVA made by the Municipal Property Assessment Corporation ("MPAC") through requests for reconsideration, equity changes or gross error, and shall remain unchanged for the duration of the term of the payment of Development Grants for the Eligible Development. Destination Municipal CVA Taxes means the amount calculated by multiplying the CVA's directly attributable to the Eligible Development as reflected in the returned assessment roll applicable to the first full taxation year following the completion and reassessment of the Eligible Development, by the municipal tax rate(s) applicable to the Property and the Eligible Development at that time. The Destination Municipal CVA Taxes shall remain fixed for the purposes of determining the Municipal Tax Increment for the Eligible Development subject to any adjustments to taxes arising from assessment appeals or changes to the Destination Municipal CVA made by MPAC through requests for reconsideration, equity changes or gross error, and shall remain unchanged for the duration of the term of the payment of Development Grants for the Eligible Development. 6 THE CIP PROGRAM In order to achieve the objectives of this CIP, the City will offer the programs described in Sections 6.1, 6.2 and 6.3, below. 6.1 Brownfields Remediation Tax Assistance For the purpose of this CIP, Brownfield Remediation Tax Assistance is designed to provide tax
assistance where environmental remediation is undertaken on brownfield sites in conjunction with development for employment uses, excluding retail development. The assistance will take the form of a cancellation of a portion of the Municipal Tax Increment payable following the remediation and development of the site. Brownfield tax assistance may be provided for up to 3 years or until all eligible remediation costs have been compensated through the program (whichever occurs first). In addition to the cancellation of municipal taxes, some or all school taxes may also be cancelled, at the sole discretion of the Province. Provincial assistance may not be available in the East Bayfront and West Don Lands areas, if the provincial portion of the tax increment is used for the proposed Tax Increment Financing in those areas. Full details of the program are set out in Appendix 1. 6.2 Development Grants The Development Grant program is designed to provide assistance in the form of a series of annual grants to eligible owners who develop buildings and facilities for employment uses in targeted sectors in the Waterfront. The targeted sectors and uses are identified in Appendix 2. Development Grants are funded from a portion of the Municipal Tax Increment. The grants are often referred to as Tax Increment Equivalent Grants (TIEGs). The total grant for a development may not exceed 60% of the cumulative Municipal Tax Increment over a 10-year period. All eligible development must conform to the zoning by-law and will require a building permit. Developments qualifying for Brownfield Remediation Tax Assistance and Development Grants may be eligible for a maximum of 12 years combined assistance. Full details of the program, including definition of the eligible uses, are set out in Appendix 2. 6.3 Land Acquisition and Disposal The City may acquire land, develop it, rehabilitate or expand existing buildings on it, and sell, lease or otherwise dispose of the land or its buildings, at or below market value, in order to implement the objectives of this CIP. Any action to implement this policy will require: i) a resolution of the City Council that is initiated by a staff report signed or co-signed by the Deputy City Manager and Chief Financial Officer; and ii) a demonstration by TWRC that the action is needed to implement the vision for the Waterfront and to meet the goals of the CIP.
6.4 Financial Incentives Agreement As a condition of both programs described herein, owners shall enter into an agreement with the City to be registered on title (hereinafter referred to as the Financial Incentives Agreement ). The Financial Incentives Agreement will set out the terms and conditions of the Brownfields Remediation Tax Assistance and/or the Development Grant Program, as applicable. Terms and conditions of the Financial Incentives Agreement will compliment and may expand upon, but in no way will detract from the conditions set out herein. 6.5 Focus Areas The Maps attached to this CIP show the existing Focus Areas within the Waterfront. Further maps and schedules may be added to this CIP to address other Focus Areas by way of amendment to this CIP. The text of this CIP and/or schedules will provide an explanation respecting the specific needs that have been identified for each Focus Area so as to warrant different policies than those applied to other locations within the Waterfront. Unless otherwise indicated, the policies contained in the main body of this CIP will continue to apply in the Focus Areas in addition to the specific Focus Area policies. 7 CIP REVIEW The CIP will be reviewed every four years following this CIP coming into full force and effect. Each review will be initiated by a staff report recommending the content and process for the review; and the review shall recommend whether the Brownfield Remediation Tax Assistance and Development Grant programs should continue or be terminated. 8 REPEAL In the event that this CIP, or any portion thereof, is repealed, any owner who has successfully applied to benefit from the programs offered by this CIP prior to the date of repeal, and has been found eligible to receive Brownfield Remediation Tax Assistance and/or Development Grants, will benefit from the program(s), as applicable, in accordance with this CIP, despite its whole or partial repeal.
APPENDIX 1: BROWNFIELDS REMEDIATION TAX ASSISTANCE 1 INTRODUCTION This program is designed to provide assistance to brownfield properties where contamination has rendered the property vacant, under-utilized, unsafe, unproductive or abandoned. Properties will only qualify for assistance where brownfields remediation is undertaken in conjunction with development of employment uses, with certain exceptions as detailed below. The financial assistance will be determined based on the Municipal Tax Increment following development for employment uses. Further, at its sole discretion, the Province may elect to provide tax assistance by cancelling all or a portion of the school portion of property taxes. Owners are only eligible for Brownfields Remediation Tax Assistance where a Phase II Environmental Site Assessment has been conducted, and has identified contaminants exceeding acceptable Ministry of Environment standards that would prevent a Record of Site Condition being registered in the Environmental Site Registry, in accordance with subparagraph 4i of Section 168.4 of the Environmental Protection Act. There are a number of other eligibility requirements which are set out below. In addition, the City must pass a by-law, pursuant to Section 333(2) of the City of Toronto Act, 2006 to authorize the tax assistance. By-laws will be brought forward as properties become eligible for assistance. Property owners receiving the Brownfields Remediation Tax Assistance will be required to enter into a Financial Incentives Agreement with the City. 2 PROVINCIAL PARTICIPATION In addition to the cancellation of a portion of municipal taxes, all or part of the school portion of property taxes may also be cancelled or deferred pursuant to the City of Toronto Act, 2006. For this to occur, the Minister of Finance must approve the Provincial participation, including the extent of tax assistance the Province will provide. The City must notify the Minister of Finance prior to the passage of any by-law pursuant to Section 333(2) of the City of Toronto Act, 2006, at which time the Minister may approve the by-law and also provide for the cancellation or deferral of school taxes proportionally. The matching education property tax assistance may be provided on a different schedule from the assistance provided by the City and may be subject to different conditions. The cancellation or deferral of school taxes, and any related conditions, is at the sole discretion of the Province. 3 CALCULATION AND DURATION The Brownfields Remediation Tax Assistance will be provided in the form of a cancellation of all or a portion of the Municipal Tax Increment. The Brownfield Remediation Tax Assistance will be available for a Development Period which will commence upon reassessment following development and end on the earliest of:
(a) Either: (i) (ii) two (2) years after the date that MPAC reassesses the property to reflect the fully improved value of the developed property; or three (3) years after the date that MPAC reassesses the property to reflect the fully improved value of the developed property, if the property is also receiving development grants described under Appendix 2 of this CIP; or (b) the date that the tax assistance provided for the property equals the sum of, (i) (ii) the cost of any action taken to reduce the concentration of contaminants on, in or under the property to permit a record of site condition to be filed in the Environmental Site Registry under section 168.4 of the Environmental Protection Act, and the cost of complying with any certificate of property use issued under section 168.6 of the Environmental Protection Act; Assistance in any year will be reduced by the amount of any rebate of municipal taxes paid to the property owner, including rebates to reflect vacancy, charitable status, heritage status etc. Only the following costs will be eligible for Brownfields Remediation Tax Assistance: - Environmental studies; i.e. a Phase II Environmental Site Assessment and/or a Phase III Environmental Site Assessment/Remedial Workplan; - Environmental remediation; - Environmental insurance premiums; - Demolition or removal of debris relating to remediation; - Cost of complying with a Certificate of Property Use. For further clarity, Brownfield Remediation Tax Assistance will not exceed the Municipal Tax Increment in any given year. The property owner will be required to pay the property taxes as calculated from year to year in the Development Period less the amount to be cancelled in each year under this assistance program. The Municipal Tax Increment to be cancelled will not exceed the property owner s eligible remediation costs minus any other City or external grants that provide money for brownfield remediation. Finally, Brownfields Remediation Tax Assistance will only be provided to offset remediation costs incurred after the Section 333(2) By-law has been enacted and for costs related to environmental testing incurred within the 12 months prior to the submission of an application for Brownfield Remediation Tax Assistance. 4 ELIGIBILITY To qualify for Brownfields Remediation Tax Assistance the property must be developed for employment uses, excluding retail uses. Ancillary retail uses subordinate and directly related to,
and dependent upon, a principal employment use, building or structure will be considered eligible, including ground floor retail in an office building. For the purpose of this Appendix a retail use is defined as lands, buildings or structures or parts thereof used, designed or intended for use for the primary purpose of the sale or rental of services, goods, foods, wares, merchandise, substances, articles or things to the public, and includes offices in connection with, related or ancillary to such retail uses, and includes, but is not limited to, the following: a) Restaurants, fast food restaurants, banquet halls; b) Night clubs; c) Cinemas, movie houses and drive-in theatres; d) Automotive fuel stations with or without service facilities, commercial parking structures, specialty automotive shops, automotive repairs, collision services, car or truck washes, and auto dealerships; e) Regional shopping centres, community shopping centres and neighbourhood shopping centres, including more than two stores attached and under one ownership; f) Department stores and discount stores; g) Bank branches and similar financial institutions, including credit unions but excluding freestanding bank kiosks; h) Warehouse clubs and retail warehouses, including commercial establishments which have as their principal use the sale of goods and merchandise to the public in a warehouse format; i) Personal service stores and establishments. Concert halls and theatres are an eligible employment use for the purposes of this Appendix. Should other ineligible uses be developed on the property, the owner will be required to pay the full property taxes for that portion that contains ineligible uses. For a property developed for a combination of eligible and ineligible uses, the portion attributable to the ineligible uses will be determined based on the gross floor area of the ineligible use. 5 OTHER CONDITIONS To qualify for the Brownfields Remediation Tax Assistance, the following criteria must be met: i) The applicant must submit to the City: a) A Phase II Environmental Site Assessment confirming that the property does not meet the standards that would permit a Record of Site Condition to be filed with the Ministry of Environment. b) A brief description of the remediation proposed, including technologies to be used and the expected duration of remediation work. c) A statement of costs to be incurred in connection with the remediation, in a form satisfactory to the General Manager of Economic Development. This statement must summarize all remediation costs. Paid invoices must be from a Qualified
Person as defined in Ontario Regulation 153/04 of the Environmental Protection Act or an entity that is satisfactory to the City. The costs claimed may be subject to an independent audit at the City s request, to be conducted at the sole expense of the property owner. d) A signed declaration respecting funding from other City or external sources. e) Details of the proposed development. ii) iii) iv) The property must not be in arrears with taxes or other fees and charges that may have been imposed by the City. The Owner must enter into a Financial Incentives Agreement with the City to be registered on title, pursuant to Section 28(7) and 28(11) of the Planning Act. The applicant must meet any further conditions as may be included in the By-law passed pursuant to Section 333(2) of the City of Toronto Act, 2006, if any. 6 PAYMENT i) The City will provide Brownfield Remediation Tax Assistance in the form of a cancellation of a portion of property tax payments. ii) iii) iv) Property owners will be required to pay Base Municipal CVA Taxes during the Development Period, as defined in this CIP. The amount of tax assistance to be provided will be adjusted in the event of reassessment as a result of an assessment appeal. In case of an assessment appeal, the City reserves the right to suspend the Brownfield Remediation Tax Assistance program pending final disposition of the appeal. v) The timing or terms of any Provincial Brownfield Remediation Tax Assistance may not align with the timing of City assistance.
APPENDIX 2: DEVELOPMENT GRANTS (TIEGS) 1 INTRODUCTION The Development Grants program is designed to provide assistance in the form of a series of annual grants to eligible owners who undertake development for specific employment uses. The grants are designed to stimulate building construction and expansion that will help implement the vision for the revitalization of the Waterfront. The grants will be funded from a portion of the Municipal Tax Increment, in the form of tax increment equivalent grants (TIEGs). Prior to receiving the Development Grants, property owners must enter into a Financial Incentive Agreement with the City. 2 DEVELOPMENT To be eligible for Development Grants properties must undergo development. Development is investment that results in the productive use of lands and/or buildings within the Focus Area for the purpose of specified uses described below, and includes but is not limited to new building construction or improvements made for the purposes of establishing or maintaining a business enterprise, or the expansion of existing buildings to realize more effective utilization of the land s potential. A separate program to assist with brownfield remediation is also available (see Sec 6.1, Brownfields Remediation Tax Assistance, and Appendix 1). 3 ELIGIBILITY CRITERIA 3.1 Definitions i) Biomedical: pharmaceutical, bio-technology product, or medical device manufacturing and/or scientific research and development related to the creation of products, processes and services designed to improve health. Does not include activities related to patient health care such as doctor s offices, clinics, diagnostic labs or hospitals. ii) iii) iv) Broadcasting: radio, television and internet broadcasting undertaken within studios and associated facilities but not including Film Studio Complexes. Call Centre: an establishment primarily engaged in receiving and/or making telephone calls for others generally for the purpose of soliciting or providing information, product and service promotion, taking orders, and raising funds. College: a private school or college that teaches subjects directly related to the following sectors: